Porsche says Cayenne Diesel on the Way

STUTTGART, Germany — With European markets beginning to offer tax incentives for vehicles with diesel engines, Porsche announced on Thursday that it will roll out a Cayenne equipped with a diesel starting in February.

The Cayenne diesel will be priced at the U.S. equivalent of $70,640 in Germany. In other European markets, the Cayenne diesel will start at the U.S. equivalent of $59,142.

"In response to customer demand, the new Cayenne model will initially be offered in Europe," Porsche said in a statement. "Preparations for market introduction in other countries are underway."

It did not specify which other countries may get the Cayenne diesel. Porsche said "changed legal regulations, especially in European markets, resulting in tax incentives for vehicles with diesel engines" prompted the new variant of the Cayenne. The U.S. has launched new energy tax credits for diesels as well. The federal fuel economy Web site notes that some diesels purchased after 2005 may be eligible for a federal income tax credit of up to $3,400.

The German automaker said the Cayenne would get a 3.0-liter V6 turbodiesel that delivers 240 horsepower and 406 pound-feet of torque. The engine is linked to a standard Tiptronic-S automatic transmission. The diesel will be supplied by Audi AG, a subsidiary of the VW Group. Porsche said the average consumption of the Cayenne diesel is the equivalent of 25.3 mpg.

As a footnote to the diesel announcement, Porsche said it expects its Cayenne hybrid to be launched into the market "at the end of the decade."

Inside Line says: Keep your fingers crossed that Porsche may roll out the Cayenne diesel in the U.S. at some point.